Context
The House of Lords Industry and Regulators Committee has launched an inquiry into the regulation of the London Market (commercial and reinsurance market). The Committee will be exploring the extent to which regulatory policy is well-designed and proportionately applied, together with the possibilities for optimising policy following Brexit. As part of the inquiry a call for evidence has been published.
Key points to note
The Committee will conduct a short inquiry (including a small number of public evidence sessions) which will consider:
- The roles of the Bank of England and Financial Conduct Authority and the appropriateness of regulation
- The content of regulations as well as their implementation and application by regulators – relative to the risks posed by the London Market.
- The effects of regulation on customer interests and the market’s global competitiveness.
The call for evidence asks the following questions:
- Is the UK regulatory framework appropriate for the commercial insurance and reinsurance sectors?
- To what extent do the Bank of England and Financial Conduct Authority apply and interpret regulatory policy in these areas in a proportionate manner and strike the right balance between regulation and competitiveness?
- How do the activities of the UK’s financial regulators affect the ease of carrying out commercial insurance and reinsurance business in the UK? What impact does this have on the availability and cost of insurance cover in the UK?
- What is the status of the London Market’s global competitiveness, and how is this impacted by different regulatory approaches in other territories?
- What improvements could be made to the regulation of commercial insurance and reinsurance in a post-Brexit context?
Next actions
Written evidence from interested individuals and organisations must be submitted by 11th February 2022.